IL SB2885

Increases the asset threshold for small State banks to qualify for reduced board requirements from $20,000,000 to $50,000,000, allowing banks with less than $50,000,000 in assets that have existed for 10+ years to operate with a minimum of 3 directors instead of 5, subject to Commissioner approval.

Requires at least one director to be independent (not an officer or employee) if a State bank has fewer than 5 directors, and mandates annual Commissioner review of the appropriateness of reduced director minimums.

Permits State bank boards to hold regular meetings quarterly instead of monthly with prior written approval from the Commissioner, maintaining flexibility in governance.

Allows directors and board committees to consider the effects of actions (including mergers and control changes) on employees, depositors, suppliers, customers, and communities when making business decisions.

Adds new Section 80.5 requiring the Secretary to provide the Board with annual accounting information including fees collected, Bank and Trust Company Fund deposits, administrative expenses, and available fee credits.